Feds sue former state Rep. Barry Ivey’s company over $339K in unpaid taxes

The federal government has filed a lawsuit against Pinnacle Precision Services, a Baton Rouge area industrial contractor, in an effort to recover $339,530.85 in unpaid federal taxes and enforce federal tax liens on a piece of property tied to the company.

The complaint, filed in Baton Rouge federal court on Feb. 12, alleges that Pinnacle failed to pay federal corporate income taxes, employment taxes and unemployment taxes between 2012 and 2018.

According to court filings, the Internal Revenue Service assessed Pinnacle’s unpaid tax liabilities and issued multiple demands for payment, but the company has allegedly failed to settle its debts.

The IRS filed a Notice of Federal Tax Lien against Pinnacle on Oct. 21, 2019, documents show. Tax liens are legal claims against a taxpayer’s property that arise when the taxpayer fails or neglects to pay a tax debt.

Just two days later, former Central state Rep. Barry Ivey—Pinnacle’s president and managing member—transferred a parcel of company-owned real estate in East Baton Rouge Parish to an individual named Daniel Ivey for only $1. The government contends that this was likely an attempt to shield the property from collection efforts but that Daniel Ivey, who is also a defendant in the suit, is holding the property as a nominee for Pinnacle, meaning the company still has a beneficial interest in it.

The property in question is identified in public records as Tax Parcel No. 913391, located in the Chene Rouge subdivision. Pinnacle purchased the property on May 9, 2007, with Barry Ivey signing the purchase agreement.

The lawsuit contends that because Pinnacle was the owner of the property when the IRS placed tax liens on it, the government has the right to foreclose on the property and sell it to recover the company’s unpaid taxes.

The government is seeking a monetary judgment against Pinnacle for its unpaid federal tax liabilities in the amount of $339,530.85 as well as foreclosure on the property in question.

Representatives for Pinnacle had not responded to requests for comment before this afternoon’s publication deadline.